Introduction
Lombard Finance has created LBTC to eliminate liquidity risk and incentivize users to provide liquidity to Babylon. LBTC is a liquid and yield-bearing representation of BTC, which can move seamlessly across chains and decentralized finance as collateral without compromising security. LBTC unlocks unprecedented access to staking, yield generation, lending, borrowing, and trading with Bitcoin.
LBTC has attracted $228M (3,927 BTC) in deposits in about two weeks of its closed beta (only close partners and waitlist participants had access).
This proposal aims to integrate Lombard Finance’s LBTC into Mitosis EOL. Once integrated, users who deposit LBTC will earn MITO Point and 2x Lombard LUX, Babylon points, and Babylon POS staking yield.
Links
Website: https://www.lombard.finance/
LBTC dApp: Lombard Finance
Twitter: x.com
Documentation: https://docs.lombard.finance
Protocol Information
Lombard is a security primitive aiming to unlock the potential of Bitcoin as a dynamic financial tool in DeFi. Leveraging Bitcoin’s use as a store of value makes it a good candidate for providing security to PoS networks.
Lombard is an aggregated security primitive dedicated to unlocking Bitcoin’s potential as a dynamic financial tool by connecting it to DeFi. By aggregated Lombard refers to assets, protocols and blockchains all being interconnected through LBTC.
Lombard uses a multi party authentication (MPA) in combination with a CubeSigner key management system to securely utilize assets through. This implements usage limits, timelocks and access controls to ensure that the bitcoin and yield of users are safe. Lombard also uses a trusted network of nodes running the Rafe algorithm to reach consensus. This allows for verification of deposits produce signed data and select the appropriate finality partners for staking.
Investors
In the most recent funding round, announced July 2nd, 2024, Lombard raised $16M from Babylon Chain, dao5, Franklin Templeton, Foresight Ventures, Mirana Ventures, Mantle EcoFund, and Nomad Capital, as well as strategic partnerships with major cryptocurrency exchanges like Bitget, Bybit, and OKX.
Audit History
Lombard has conducted audits with several players, including Halborn and Veridise. Information about the detailed audit reports can be found here.
Synergy
LBTC can serve as the first BTC LST in EOL. This begins Mitosis’s journey into the Bitcoin staking ecosystem. It will allow for a more central hub of liquidity that protocols can utilize when looking to bootstrap features using LBTC.
Lombard Finance’s LBTC being into EOL helps realize it’s utilization throughout DeFi. By becoming a strong source of TVL for protocols looking to onboard the spearheading initiative of the next generation of BTCFi.
By bringing LBTC to Mitosis users are adding to the liquidity of LBTC in the greater ecosystem while receiving the benefits of the EOL collective and associated EOL protocols. Through seeing the addition of LBTC to EOL now, Lombard is looking at getting the Mitosis community involved in bitcoin liquid staking and moving towards a more secure future.
Conclusion
The focus of Mitosis to advance assets across many chains is well embodied by the addition of LBTC. In this sense LBTC is able to originate from Bitcoin, be utilized on Ethereum and then further made into miLBTC on the Mitosis Chain in the future internalizing the yields received by LBTC within protocols. This initiative helps bring users together across multiple chains into one solid opportunity driven by a future proof asset.
